Restaurants - take control!

Britain's catering sector should take control of energy costs by cutting waste and shopping around for better deals to recude it's £1.3 billion annual spend on energy, according to Energy Advice Line.

A survey of 150 restaurant owners, managers and chefs carried out by Big Six energy supplier E.ON showed energy worries came second only to staff issues, yet three-quarters admitted they didn't know how to reduce their energy consumption.

The research revealed that despite more than 80% of restaurateurs saying they considered sustainability when making business decisions, 75% said they do not have the tools and knowledge to make changes. Energy costs make up almost a quarter of overheads for the restaurant and catering industry, with an estimated 10% of this lost on wastage.

"The findings must be a major concern for the catering industry, which is one of the most energy-intensive sectors in the UK," said Julian Morgan, managing director of the Energy Advice Line, the UK's leading price comparison and switching service for consumers.

"It's estimated that reducing energy use by 25% across the industry could result in savings of £325 million - a significant amount for a sector where margins are often very tight.

"We urge small and large organisations in this sector to really take control of their energy costs - by implementing a workplace energy saving plan, and by shopping aorund for the very best energy deals.

"We understand that energy bills often languish in the too hard basket in the hospitality sector, but in reality this is the industry that can least afford to do that."

The survey revealed that the profit margin of an average UK restaurant was approximately 8%. With estimated energy savings of nearly 25% achievable in most restaurants, the research showed they could boost profit margins to around 12.6%.

Chefs and retaurateurs admitted to leaving on gas hobs, grills, deep fryers, heat lamps and ovens throughout service so that high quality food could be turned out quickly. The Carbon Trust estimates that the UK hopsitality sector generates the equivalent of about 8 million tonnes of carbon - greater than the entire carbon emissions of Costa Rica or Kosovo.

Michelin-starred chef Glynn Purnell and E.ON have launched a campaign to help small businesses save energy and money through a special Energy Toolkit created to help firms manage their energy use and plan efficiencies.

"Restaurants need to strike a balance between quality food and service and energy costs, for the sake of their bottom line and the environment," Mr Morgan said.

"It sounds hard but it's not - restaurateurs need to devise an energy saving strategy and get their staff to embrace the policy. There is a range of things they can do to save money - choosing energy-saving equipment, locating fridges and freezers away from hot kitchens, and considering induction hobs instead of gas just to name a few.

"But switching suppliers is the easiest way of all to cut costs. Restaurateurs are simply wasting large amount of money if they don't check the market for the best deals and switching suppliers accordingly."

The Energy Advice Line is a consumer champion and an independent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simple compare electricity and gas prices, and to switch to the best available deal on the market.

The service also offers free advice and a contract management service, including alerts to remind business consumer users when their fixed-term energy contracts are about to end.

For further information, visit energyadviceline.org.uk

Are you getting the service you deserve?

Business energy users and households should consider customer service as well as price when choosing a supplier, according to the Energy Advice Line.

The call follows a newspaper survey that showed a huge disparity between suppliers when it came to total spending on customer service.

“Instances of very poor customer service and bungling by energy suppliers still abound and this comparison of spending sheds interesting light on possible reasons why,” Mr Morgan said.

“The difference between the highest and lowest spenders on customer service is significant, so it seems sensible to consider factors in addition to price when making a decision on which supplier to go with.”

The Telegraph newspaper defined customer service to including complaints handling as well as simple requests such as a change of address, and any technology that customers can use to communicate with their supplier.

Of those suppliers who responded to the request for information about spending on customer services, Scottish Power rated the highest at £42 per head per year. However, this included a one-off investment to improve out-of-date IT systems and does not reflect ongoing investment in customer services. Ofgem banned the firm from recruiting new customers last month until it had fixed its customer services problems.

First Utility was ranked second highest spender at £26 per customer each year, followed by British Gas (£16), E.On (£14) and npower (at least £6.67). EDF and SSE refused to disclose their customer services spending.

“We help countless customers each year who contact us in desperation and frustration at the terrible standards of customer service offered by their supplier,” Mr Morgan said.

“Resolving a problem with a bill, or even changing something as simple as an address, can prove to be a time-consuming and infuriating exercise. If you are a business this can be an expensive waste of time.

“We would urge all customers not to make price the only factor when choosing supplier, although value-for-money is obviously crucial.

“Our expert advisers, who know the energy industry well, can help you make the right informed choice.”

The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.

The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice line for business energy customers.

For further information visit www.energyadviceline.org.uk

Trouble getting the cheapest deals?

News has come out this week that some of the Big Six energy suppliers are barring their existing customers from being able to find the cheapest tariffs that they have on offer.

Having been uncovered by Radio 4's 'Moneybox' programme - researchers have found that E.ON, EDF, SSE, and British Gas have ensured that their existing customers are unable to make the most of the cheapest prices they offer to new customers.

These tariffs for existing customers can end up costing hundreds of pounds a year more than if they were to switch onto a more competitive tariffs designed to attract new customers.

Previously, this type of practice was ruled as unfair and banned by the industry regulator Ofgem in April 2014. Earlier this year Ofgem announced that they would no longer be reinforcing this rule after a recommendation from the Competition and Markets Authority (CMA).

Comparison agencies have compared the prices by either renewing as an existing member of the supplier, or registering as a new one, and with E.ON this price difference came in at £260. But E.ON is not the only one to employ this tactic.

Research by the BBC has found the following results from British Gas:

• 'Home Energy Exclusive June 17' tariff as a new customer - £735
• 'Home Energy Exclusive June 17' tariff as an existing British Gas customer - £972

These tariffs have also been shown to be hidden from other services such as the Energy Helpline because the information provided will rule them out of being a new customer with the existing supplier.

However, currently the consensus is that the other Big Six suppliers will not follow in the direction of their competitors. Scottish Power released a statement to say that they will not be offering these sorts of tariffs, stating that their customers can switch freely between the different tariffs on offer.

The best way to ensure that the price you are paying is competitive is to take on the advice of an unbiased and neutral help line, such as the Energy Advice Line. The leading price comparison and switching service provides free advice, and if you wish to change your supplier they will do all the hardwork for you from initial sign up through to completion.

To find out more visit energyadviceline.org.uk

Catering Sector Should Save Energy & Shop Around

Britain's catering sector should take control of energy costs by cutting waste and shopping around for better deals to recude it's £1.3 billion annual spend on energy, according to Energy Advice Line.

A survey of 150 restaurant owners, managers and chefs carried out by Big Six energy supplier E.ON showed energy worries came second only to staff issues, yet three-quarters admitted they didn't know how to reduce their energy consumption.

Seek Help When Relocating Your Business

The Energy Advice Line has urged small businesses that need to move premises to get in touch after a survey showed 20% of firms put off relocating because they cannot face changing service providers.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users said it was unfortunate that so many business owners were staying in potentially inappropriate premises because dealing with suppliers was so hard.

“Small business owners should get in touch with us because we can sort out their business energy needs, leaving them free to get on with moving and ensuring their firms make a smooth transition to new premises,” Mr Morgan said.

E.ON To Pay Customers £7.75 Million

The Energy Advice Line has urged business and domestic energy consumers to check their bills after a supplier was found to have overcharged some customers.

Julian Morgan, managing director of the price comparison, switching and advice service, said consumers could not automatically assume their energy bills were error-free.

“Mistakes do happen, and it’s important that businesses and households check their energy bills to ensure everything is in order,” Mr Morgan said.

“This can sometimes be difficult because bills are more complex than they should be, and we would like to see further simplification so they are easier to understand.

“But in the interim it is up to consumers to ensure they understand everything they are being charged for and if something doesn’t seem quite right, they need to check with their supplier.”

The Energy Advice Line’s call comes after Ofgem secured £7.75 million from energy supplier E.ON for incorrectly charging exit fees and/or overcharging customers following price rises. This penalty was in addition to around £400,000 E.ON has already paid back to potentially affected customers.

Under Ofgem rules, suppliers have to give domestic customers 30 days’ notice of a price rise so they have the chance to switch supplier before the increase takes effect.
If a customer signals their intention to switch within the 30 days, they do not incur exit fees or the higher charge even if the switch occurs after the price rise.

“These rules imposed by Ofgem are crucial because they give important protection to consumers who want to avoid a price hike,” Mr Morgan said.

“In E.ON’s case, billing errors were made and eventually identified, but it illustrates just how important it is for customers to check their bills and know their rights.

“But they don’t have to do it on their own. Using a reputable and independent switching service like the Energy Advice Line has many advantages, key among them being the help we offer customers to find the cheapest deals and switch.

“But our service doesn’t stop there. We have lots of expertise about energy and billing and we are pleased to help all our customers if they have queries about their bills during the lifetime of a contract.”

The Energy Advice Line is a consumer champion and an independent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simply compare electricity and gas prices, and to switch to the best available deal on the market.

The service also offers free advice and a contract management service, including alerts to remind business consumers users when their fixed-term energy contracts are about to end.

For further information, visit www.energyadviceline.org.uk